The value of energy trade between the United States and Canada dropped by 11% in 2025 to an estimated $137 billion, according to data from the U.S. Census Bureau published by the Energy Information Administration. The decline was driven by both lower commodity prices and reduced trade volumes, with most of the bilateral energy commerce consisting of U.S. imports from Canada rather than exports flowing in the opposite direction. Crude oil alone accounted for 69% of the total value traded between the two countries last year.
U.S. energy imports from Canada totaled $111 billion in 2025, while energy exports to Canada reached just $26 billion, the report shows. Crude oil trade between the nations averaged $94.7 billion in value, down 16% from 2024, as Brent crude oil prices averaged $69 per barrel—$11 per barrel lower than the previous year. U.S. crude oil imports from Canada averaged 3.9 million barrels per day in 2025, a 4% decline from 2024, while U.S. crude oil exports to Canada averaged 383,000 barrels per day, down 2%. Petroleum products trade increased by roughly 2% by volume but fell 4% by value due to lower fuel prices. The United States imported 583,000 barrels per day of petroleum products from Canada, a 2% decrease, valued at $16 billion—15% lower than in 2024. Meanwhile, U.S. petroleum product exports to Canada averaged 504,000 barrels per day, up 6%, though their value dropped 12% to $13.4 billion.
The report notes that as of March 6, 2025, Canada's energy exports to the United States became subject to a 10% tariff, though some crude oil volumes are potentially exempt if they qualify for the United States-Mexico-Canada Agreement preference. More recent tariff actions announced by the White House exempt energy trade entirely. Despite the imposition of the 10% tariff last year, the analysis states that the United States remained the largest export destination for Canada's crude oil given the existing pipeline infrastructure connecting the two markets. The report also points out that relatively complex U.S. petroleum refineries tend to prefer heavy crude oils, such as those produced in Canada.
The reduction in U.S. crude oil imports from Canada in 2025 was partly due to increased utilization in Canada of the Trans Mountain Expansion pipeline, which brings Canadian crude oil to the Pacific Coast for export to foreign markets, the report explains. This infrastructure allows Canadian companies to export crude oil to markets in the U.S. West Coast region and, increasingly, to those in Asia. The drop in petroleum product values was driven by lower fuel prices, as crude oil prices make up the largest component of gasoline and diesel fuel prices. Canada remained the primary source of U.S. crude oil imports in 2025, with U.S. crude oil exports to Canada typically consisting of low-density and low-sulfur crude oil grades shipped via pipeline to eastern Canada. The shifting dynamics reflect both global price pressures and infrastructure developments that are reshaping North American energy flows.